The Exclusive Investigating Unit has recognized five accounting corporations that assisted loot Lottery cash. Graphic: Lisa Nelson

The Exclusive Investigating Device has discovered five accounting and auditing companies that served non-income firms loot Lottery cash meant for “good brings about”.
The accounting corporations compiled fraudulent financial statements used by these businesses to make an application for Lottery funding, the SIU advised Parliament.
Acting chief nationwide investigations officer Zodwa Xesibe said the SIU would consider action to possess these corporations blacklisted.
A 4-yr probe via the เช ค หวย Special Investigating Unit (SIU) has exposed 5 accounting and auditing corporations that aided dodgy non-financial gain companies loot hundreds of numerous rands intended for “superior triggers” through the Lottery.

These companies have been explained by the SIU as “Expert enablers,” who “compiled fraudulent economical statements” which were utilized by the companies to apply for Lottery funding.

The 5 providers have been named in Parliament with the SIU’s performing chief countrywide investigations officer Zodwa Xesibe. They can be TTP Consulting, Dzata Accountants, Magodi Consulting, Mageba Ntuli Consulting and Tafta Consulting and Accounting Providers.

Fraudulent financials produced by these five accounting companies assisted virtually forty corporations get their palms on lottery funding, in accordance with the SIU presentation.

Dependant on a Software that contains knowledge with all lottery grants considering the fact that 2002, these corporations obtained above R314-million in funding.

“These NPCs had been funded via the Nationwide Lotteries Fee (NLC) although the funds weren't utilized for his or her supposed goal,” Xesibe explained to Parliament’s Trade, Market and Competitors Portfolio Committee previous 7 days.

The SIU, the Hawks and the National Prosecuting Authority (NPA) have been in Parliament to report to the committee on development in bringing people today and organisations linked to looting the lottery to book.

Xesibe told GroundUp that the SIU meant to lodge problems from the accounting companies concerned and was checking if these corporations ended up registered and, If that is so, with which Qualified bodies.

“We would like these businesses to be blacklisted,” she explained to GroundUp.

To qualify for Lottery funding, an organisation was necessary to create two years of yearly monetary statements, Xesibe stated in Parliament.

On the other hand, as an ongoing six-12 months investigation into lottery corruption by GroundUp has exposed, hijacked non-gain organisations (NPOs) or new shelf non-earnings companies (NPCs) without any money keep track of documents were used to make an application for funding.

In a few cases, Just about equivalent economical statements were being manufactured for unrelated organisations, normally with just the names with the organisations transformed, GroundUp’s investigation identified.

Files submitted by authentic NPCs for unsuccessful grant apps were normally utilized by new or hijacked NPCs and NPOs to apply for funding. The small print and files in the unsuccessful applicants were being supplied by senior Lottery officials to your dodgy applicants.

With cursory or - frequently - no verification, these dodgy applicants ended up awarded many rands in grants. Occasionally further tranches of money had been compensated out with out A great deal checking to the development of projects.

The vast majority of those grants were being produced by means of proactive funding, which was at the guts of your looting from the lottery. Proactive funding permitted the Minister of Trade, Field and Levels of competition, or the NLC along side its board, to detect triggers to fund devoid of to start with necessitating an software. This was stopped each time a new NLC board was appointed.

R2-billion in grants below investigation
SIU head Advocate Andy Mothibi said the SIU was at the moment investigating grants valued at more than R2-billion, and also the device was still often acquiring tip-offs about far more corruption.

He informed MPs which the SIU’s investigation were damaged into a few phases: the very first, that has been finalised, probed dodgy grants amounting to R280-million, and the next, also concluded, associated R247-million. Within the third phase, because of be finalised at the conclusion of the calendar year, the SIU is investigating grants valued at Just about R906-million, involving forty NPOs and NPCs, Mothibi claimed.

He reported the SIU would implement “quickly” to the Presidential Proclamation, at first granted in Oct 2020 to investigate corruption involving lottery grants, to generally be extended to include procurement by the NLC.

The SIU investigation experienced thus far resulted in thirteen disciplinary referrals to your NLC, and administrative referrals to SARS and the Companies and Intellectual Properties Commission to blacklist people implicated while in the looting. Problems involving two individuals had been referred for the Lawful Practice Council plus the SA Institute of Chartered Accountants.

The SIU experienced noticed several traits under the preceding NLC board and executive - a lot of whom are already implicated in looting - Mothibi instructed MPs.

This provided a “trend of collusion concerning NLC officials and NPOs and NPCs”, “the hijacking of NPOs and NPCs” and “basic maladministration from the approval of grants,” he said.

Sluggish development from the NPA
The SIU has frozen properties, properties, autos together with other belongings really worth tens of thousands and thousands which were purchased with lottery funds, but MPs expressed concern at slow progress in prosecuting All those linked to the looting. (The SIU is mandated only to recover belongings purchased with stolen state funds and doesn't have prosecuting powers).

When the SIU has referred 15 issues to your NPA, to this point only two individuals have been brought right before a courtroom. Two Guys appeared in court docket in Kimberley a short while ago in connection with misappropriated funds gathered to get a undertaking to fight gender-centered violence.

In August 2022 Christopher Tshivule was sentenced to eight several years in jail for his component within a R1.five-million lottery grant fraud. Prices in opposition to two persons billed with him, who the SIU has called “kingpins” in the corruption that overwhelmed the NLC, have been dropped.

Main-Common Mmeli Makinyane, the performing divisional commissioner for priority offences, informed MPs that the Hawks were presently investigating 16 lottery corruption-relevant cases. Yet another one particular - the Kimberley issue - is prior to a courtroom and two are already sent on the NPA for a decision to prosecute. A further 5 cases are increasingly being investigated because of the SAPS detective and forensic expert services, he explained.

Describing The explanations to the hold off in prosecutions, NPA Deputy National Director Rodney de Kock explained Portion of The key reason why was that the Hawks had to do even further investigations once they acquired dossiers with the SIU.

“In essence, the investigations carried out by the SIU usually do not satisfy legal criteria for prosecutions.”

Thus, the NPA had to work with investigators during the DPCI (the Hawks) and SAPS to perform legal investigations and make sure that the proof fulfills criminal prosecution requirements, he claimed, including: “Having said that, the operate of the SIU is significant and contributes significantly to this method.”

De Kock reported that the SIU’s investigation “typically ends in multiple referrals. The referrals might eventually cause just one docket and just one courtroom situation.”

He mentioned that 12 issues, which are “roughly 85% entire”, ended up currently being jointly investigated through the Hawks as well as the SIU’s Specialised Financial Operations Device. (These types of situations, 7 of which ended up lodged in 2020, include previous NLC chief running officer Phillemon Letwaba, who resigned under a cloud in 2022, and Pretoria attorney Leslie Ramulifho.)

De Kock reported the NPA faced many “challenges” in prosecuting circumstances. These, he claimed, included

the lapse of time in between once the offences have been dedicated along with the issuing of your Presidential Proclamation on one November 2020;
“unavailability of witnesses and/or documentary proof” (Previously this yr, the SIU informed the committee that important files wanted in a few prosecutions had been deleted from your NLC Personal computer process or had gone missing from Metrofile, a warehouse where copies of paperwork are archived and saved);
The truth that some implicated individuals are still used by NLC; and
A obstacle on the legality of the Presidential Proclamation by former NLC chairperson Alfred Nevhutanda.
“The NPA is dedicated to ensuring finalisation in these matters. To this stop, a staff of focused prosecutors continues to be allotted to supervise all NLC issues presently less than investigation,” de Kock stated. “Matters are dealt with for a precedence. At the time [the] investigations are finished, the NPA will make a call.”

What the companies say (or don’t)
GroundUp was only able to get comment from among the 5 businesses accused via the SIU in Parliament of manufacturing fraudulent yearly monetary statements,TTP Consulting.

Aubrey Moeng, certainly one of TTP’s two administrators, stated within an electronic mail in response to issues: “As a result of customer confidentiality, we want to suggest that TTP Consulting is not really willing to divulge consumers’ economical private info with the public or media … without the consent in the consumer or possibly a authorized cause.”

The business can be a “associate” of numerous state entities, including SARS and the CIPC, according to its Web-site.

Neither of the two administrators of Dzata Accountants, who're both shown as inactive within the CIPC sign up of organizations, responded to emailed questions. The business continues to be deregistered because of the CIPC for failing to post monetary statements due to the fact 2021.

The only real director of Mageba Ntuli Investing and Consulting Service, Patrick Zulu, died three many years ago, In line with official information. The organization was deregistered through the CIPC for failing to submit financial statements given that 2021.

Matamela Magodi, the sole director of Magodi Consultants, didn't respond to queries emailed to him.

GroundUp was unable to find any listing for Tafta Consulting and Accounting Providers With all the CIPC. We have been also not able to trace any of the company’s administrators to ask for remark.